Oil broke out of its major bear flag (Blue) in October last year, creating a potential bearish ascending wedge (also Blue). Last month we see that it broke out of that major wedge as well. In addition, last week it broke out of a sharp medium-term ascending wedge established in September (Red). The question is - where will it consolidate?
The bull flag break-out has a target of $70. However it is also likely there will be back-test of the long-term ascending wedge (Blue) to establish a strong base of support at ~$60 before propelling higher. However, if this level doesn't hold, it may back-test its bear flag at ~$45-50.
Oil remains extremely bullish, but we see people starting to take profits at this level.
Oh and.. congrats to bulls who bought in June 2017. #humbrag #patonmyownback
The bull flag break-out has a target of $70. However it is also likely there will be back-test of the long-term ascending wedge (Blue) to establish a strong base of support at ~$60 before propelling higher. However, if this level doesn't hold, it may back-test its bear flag at ~$45-50.
Oil remains extremely bullish, but we see people starting to take profits at this level.
Oh and.. congrats to bulls who bought in June 2017. #humbrag #patonmyownback
